Housing market bubbles and business cycles in an agent-based credit economy

Artikel

This paper investigates the housing and mortgage markets by means of an agent-based macroeconomic model of a credit network economy. A set of computational experiments have been carried out in order to explore the effects of different households' creditworthiness conditions required by banks in order to grant a mortgage. Results show that easier access to credit inflates housing prices, triggering a short run output expansion. However, the artificial economy becomes more unstable and prone to recessions. With stricter conditions the economy is more stable and does not fall into serious recessions, although a too severe regulation can slow down economic growth.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 8 ; Year: 2014 ; Issue: 2014-8 ; Pages: 1-42 ; Kiel: Kiel Institute for the World Economy (IfW)

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data) ; Aggregate Factor Income Distribution ; Housing Supply and Markets ; Production Analysis and Firm Location: Government Policy
• Thema: Credit cycles ; housing market ; agent-based model ; subprime lending

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Erlingsson, Einar Jon ; Teglio, Andrea ; Cincotti, Silvano ; Stefansson, Hlynur ; Sturlusson, Jon Thor ; Raberto, Marco
• Ereignis: Veröffentlichung
• (wer): Kiel Institute for the World Economy (IfW)
• (wo): Kiel
• (wann): 2014

Weitere Informationen

• DOI: doi:10.5018/economics-ejournal.ja.2014-8
• Handle: http://hdl.handle.net/10419/93133
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ